You then place an order with the warehouse or manufacturer (supplier/dropshipper)

They ship the product DIRECTLY to the customer

You keep the difference between what the customer pays you and what the supplier charges you

The beauty of this business model is that it means that you do not keep any stock and the supplier (be it a warehouse or the manufacturer) handles all of the fulfilment

Therefore if you have an urge or ambition to sell physical products (unless you are making them yourself) then Dropshipping is a really good solution

And even if you do make your own physical products then you could include Dropshipping as an option for other products you might want to sell

For instance, let’s say you are an artist and want to sell your pictures online

You could sell your pictures online but you could also sell paint brushes, paints, easels, crayons, pencils or anything to do with art through a Dropshipping agreement with a wholesaler

It’s a win-win because your margins will be much greater than if you were acting as an affiliate

Many eBay sellers use dropshipping as their business model – indeed if you have ever bought a phone charger or laptop battery really cheaply from an eBay shop in the UK and find that the delivery is from China – then chances are that seller has a dropshipping agreement with a Chinese supplier

Dropshipping is actually a really simple and elegant business model, and if it peeks your interest I have a free guide waiting for you if you complete the form below.